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GOP Senators Weigh Selling Radio Spectrum to Reap $100 Billion
Senate Republicans are considering a massive sale of radio spectrum intended to generate billions of dollars to help pay for President Donald Trump’s agenda and free up airwaves for wireless broadband.
(Bloomberg) -- Senate Republicans are considering a massive sale of radio spectrum intended to generate billions of dollars to help pay for President Donald Trump’s agenda and free up airwaves for wireless broadband.
Senate Commerce Chair Ted Cruz of Texas has made a spectrum auction a top legislative priority this year, with Senate Republican aides saying it could generate in the ballpark of $100 billion.
“Restoring American leadership in spectrum policy means unlocking billions for job creation, domestic investment, and the federal resources needed to pay for a secure border and stronger military,” Cruz, who has scheduled a hearing on the topic for Wednesday, said in a statement.
Cruz and Senate Majority Leader John Thune of South Dakota have previously pushed legislation intended to auction off spectrum valuable to telecommunications giants such as Verizon Communications Inc., AT&T Inc. and T-Mobile US Inc. — as well as satellite broadband services including the Starlink service owned by billionaire Trump adviser Elon Musk’s SpaceX, and Amazon.com Inc.’s Project Kuiper.
But past proposals to auction the spectrum have faced resistance from US agencies, especially the Defense Department, which holds much of it for military use and warned that re-engineering systems could cost hundreds of billions of dollars. The Pentagon uses the spectrum for high-powered radar, communications and navigation.
Now, however, the Republican grip on Washington — combined with a drive to cut budgets across government — has improved prospects for auctioning spectrum. Defense Secretary Pete Hegseth, who has voiced support for cooperating with the administration’s full agenda, said at his confirmation hearing last month that he would review the issue and ensure there’s no disruption for the military.
A Pentagon spokesperson declined to comment.
Senate Intelligence Chair Tom Cotton of Arkansas posted on X Tuesday that critical national security capabilities rely on the spectrum. “We MUST ensure those capabilities are protected,” he said.
Cruz rejected the Pentagon’s qualms, saying “we can no longer allow Pentagon bureaucratic inertia to hold back innovation and economic growth.”
Republicans, who hold a 53-47 Senate majority and an even smaller margin in the US House, must be nearly united to include the auction in the budget bill, which they intend to bypass Democrats.
Previous partisan budget bills have included spectrum sales to shrink the deficit and offset tax cuts or spending hikes elsewhere. Spectrum auctions have raised more than $233 billion for the federal government over the past three decades, according to the Federal Communications Commission.
More stories like this are available on bloomberg.com
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Business NewsEconomyGOP Senators Weigh Selling Radio Spectrum to Reap $100 Billion
First Published:19 Feb 2025, 02:47 AM IST
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